Bill Text: CA SB1269 | 2011-2012 | Regular Session | Introduced
Bill Title: Income taxes: credit: highway maintenance and
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-05-08 - Set, first hearing. Hearing canceled at the request of author. [SB1269 Detail]
Download: California-2011-SB1269-Introduced.html
BILL NUMBER: SB 1269 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Fuller
FEBRUARY 23, 2012
An act to add and repeal Sections 17060 and 23605 of the Revenue
and Taxation Code, relating to taxation, to take effect immediately,
tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1269, as introduced, Fuller. Income taxes: credit: highway
maintenance and enhancement.
Existing law authorizes the Department of Transportation to enter
into an agreement to accept funds, materials, equipment, or services
from any person for maintenance or roadside enhancement of a section
of a state highway.
The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
This bill would authorize a credit against those taxes for each
taxable year beginning on or after January 1, 2013, and before
January 1, 2017, in an amount equal to 50% of the value of materials,
equipment, or, in the case of individuals, services donated, as
defined, by the taxpayer during the taxable year for maintenance or
roadside enhancement of a section of a state highway pursuant to
existing provisions of the Streets and Highways Code.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17060 is added to the Revenue and Taxation
Code, to read:
17060. (a) For each taxable year beginning on or after January 1,
2013, and before January 1, 2017, there shall be allowed a
maintenance and roadside enhancement credit against the "net tax," as
defined in Section 17039, in an amount equal to 50 percent of the
qualified amount.
(b) For purposes of this section "qualified amount" means both of
the following:
(1) The amount paid or incurred by the taxpayer during the taxable
year for maintenance or roadside enhancement of a section of a state
highway pursuant to Section 91.5 of the Streets and Highway Code.
(2) The value of materials, equipment, and services donated by the
taxpayer during the taxable year for maintenance or roadside
enhancement of a section of a state highway pursuant to Section 91.5
of the Streets and Highway Code. For purposes of this paragraph:
(A) The value of materials and equipment means an amount equal to
the amount that would otherwise be deductible under Section 170 of
the Internal Revenue Code, as applicable for purposes of this part.
(B) The value of services donated may not be greater than the
amount determined using the hourly rate for labor, as determined
annually by the Department of Transportation, for the maintenance and
roadside enhancement of a section of a state highway.
(C) The term "services donated" does not include services
performed by the taxpayer for which the taxpayer received
compensation for services as described in Section 61(a)(1) of the
Internal Revenue Code.
(c) The credit authorized under this section for the donation of
materials and equipment shall not be allowed unless the donation is
verified in accordance with regulations prescribed under Section 170
of the Internal Revenue Code, as applicable for purposes of this
part.
(d) The credit authorized under this section for the donation of
services shall be subject to the same verification requirements
related to the use of an automobile under Section 170 of the Internal
Revenue Code.
(e) The credit amount allowed under this section shall be in lieu
of any deduction or credit otherwise allowed by this part.
(f) The credit allowed under this section for services donated
shall not be considered compensation for services, as described in
Section 61(a)(1) of the Internal Revenue Code.
(g) If the credit allowed under this section exceeds the "net tax,"
the excess may be carried over to reduce the "net tax" in the
following year, and the six succeeding years, if necessary, or until
the credit is exhausted, whichever occurs first.
(h) On or before January 1, 2016, the Franchise Tax Board shall
report to the Legislature on the utilization of the credit allowed
under this section and Section 23605. This report is not required to
be submitted in compliance with Section 9795 of the Government Code.
(i) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
SEC. 2. Section 23605 is added to the Revenue and Taxation Code,
to read:
23605. (a) For each taxable year beginning on or after January 1,
2013, and before January 1, 2017, there shall be allowed a
maintenance and roadside enhancement credit against the "tax" as
defined in Section 23036, in an amount equal to 50 percent of the
qualified amount.
(b) For purposes of this section "qualified amount" means both of
the following:
(1) The amount paid or incurred by the taxpayer during the taxable
year for maintenance or roadside enhancement of a section of a state
highway pursuant to Section 91.5 of the Streets and Highway Code.
(2) The value of materials and equipment donated by the taxpayer
during the taxable year for maintenance or roadside enhancement of a
section of a state highway pursuant to Section 91.5 of the Streets
and Highway Code. For purposes of this paragraph, the value of
materials and equipment donated means an amount equal to the amount
that would otherwise be deductible under Section 170 of the Internal
Revenue Code, as applicable for purposes of this part.
(c) The credit authorized under this section for the donation of
materials and equipment shall not be allowed unless the donation is
verified in accordance with regulations prescribed under Section 170
of the Internal Revenue Code, as applicable for purposes of this
part.
(d) The credit amount allowed under this section shall be in lieu
of any deduction or credit otherwise allowed by this part.
(e) If the credit allowed under this section exceeds the "tax,"
the excess may be carried over to reduce the "tax" in the following
year, and the six succeeding years, if necessary, or until the credit
is exhausted, whichever occurs first.
(f) On or before January 1, 2016, the Franchise Tax Board shall
report to the Legislature as required by subdivision (h) of Section
17060.
(g) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
SEC. 3. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
